fbpx Skip to main content
BusinessThe Shop Houston


By April 16, 2018January 6th, 2023No Comments

Oh Free Market Capitalism, such a great freedom we have here in America. The Market dictates prices and consumers either choose to purchase one product for “X” or a different product for “Y”. All while companies are working to convey value and convert new customers. It’s a fascinating game of Chess that we all play as business owners.Those companies who convey value the best will convert more customers and succeed in the free market. Those companies who find a way to sell their product for less than the next guy will win in the free market as well. If your target consumer perceives your product as having value to them, they will choose your product.I get excited about free market forces because we’re in an industry with a broad range of players in the market. Some producers understand the consumer very well and almost speak directly to them about their value proposition. Some producers have trouble conveying the right message and could lose sales to other producers.As a producer ourselves, we are trying to find our place in the market. What is our value? What does our customer want? Who is our customer? All the normal questions we ask in order to identify, create value and convert new customers. Thankfully, we have assembled a great team and do this well.Unfortunately, part of entering a new market with several established producers and consumers, you will be adding an additional choice to the free market. A consumer may have always wanted a different choice in the market but none existed, so these consumers had two choices. 1: Don’t buy what the market offered. 2: Purchase the only option available on the market.Where things get interesting is when you add ‘choice’ to the mix. An easy and straightforward example would be a high price point, niche product with a monopoly on a given market. Consumers lack choice so the producer dictates the price on the good or service. Consumers may pay the higher price point or not purchase at all while wishing there was another choice.A new producer enters the market with a great product, a great value, and a great price. Consumers are excited to have a choice and the previous monopoly gets upset. The new producer has disrupted a market and the consumer wins and a monopoly is broken. For most producers, if you have a good product and enjoy a monopoly you will always be thinking of various ways to maintain their monopoly, look for another monopoly and create barriers to entry. Monopolies in the free market are often “too good to be true”. If you ever find yourself saying “this is too good to be true” or “I can’t believe how much we’re making on “X” product,” then you should be looking over your shoulder for competition.Our thought on everything is, competition is good for the consumer. Free market competition forces producers to create the best product at the best price and the consumer is the ultimate beneficiary. As a consumer of potato chips, you can be thankful that growers are looking to constantly lower their prices and supermarkets are always looking for the best deal and ultimately those savings are reflected in the price every consumer pays for that good. Not really something to be thankful about until you imagine the worst case would be one potato farmer has a monopoly on potatoes and if you want to buy his potatoes it will cost you $50. You’d have to really love potato chips to pay over $50 for them.We originally created our business on the principle of disrupting stale practices, breaking down barriers and fighting every day on behalf of consumers. We see opportunities in the free market and work tirelessly to pass those to our consumer. Not surprisingly, producers who see competition enter their safe space where they enjoyed a monopoly for so long aren’t thrilled. From a business perspective, we welcome it, the market needs it, and we are going to compete hard every day to earn business and fight for every consumer in our industry.